Month: May 2016

Categories
Payroll

Furnishing of evidence of claims by employee in Form 12BB

Employees have to Furnish  Evidence of Claims in Form 12BB for Salary TDS

 

CBDT vide its Notification No. 30/2016-Income Tax dated 29-04-2016 has inserted new income tax rule 26C which requires every employee to furnish evidences of claims/deductions for salary TDS purpose in FORM 12BB. Following are the evidences prescribed for claims/deductions:

 

Sl. No

Nature of claims

Evidence or particulars

(1)

(2)

(3)

1.

 House Rent Allowance. Name, address and permanent account number of the landlord/landlords where the aggregate rent paid during the previous year exceeds rupees one lakh.

2.

 Leave travel concession or assistance. Evidence of expenditure.

3.

 Deduction of interest under the head “Income from house property”. Name, address and permanent account number of the lender.

4.

 Deduction under Chapter VI-A. Evidence of investment or expenditure.”.

Further, the Notification also prescribed new due date of furnishing TDS returns which are as under:

Sl. No.

 Date of ending of quarter of financial year

Due date

(1)

(2)

(3)

1.

 30th June 31st July of the financial year

2.

 30th September 31st October of the financial year

3.

 31st December 31st January of the financial year

4.

 31st March 31st May of the financial year immediately following the financial year in which the deduction is made”.

 

 

 

 

 

“FORM NO.12BB

(See rule 26C)

Statement showing particulars of claims by an employee for deduction of tax under section 192

1. Name and address of the employee:

2. Permanent Account Number of the employee:

3. Financial year:

Details of claims and evidence thereof
Sl. No. Nature of claim Amount(Rs.) Evidence / particulars
(1) (2) (3) (4)
1. House Rent Allowance:(i) Rent paid to the landlord

(ii) Name of the landlord

(iii) Address of the landlord

(iv) Permanent Account Number of the landlord

Note: Permanent Account Number shall be furnished if the aggregate rent paid during the previous year exceeds one lakh rupees
2. Leave travel concessions or assistance
3. Deduction of interest on borrowing:(i) Interest payable/paid to the lender

(ii)Name of the lender

(iii) Address of the lender

(iv) Permanent Account Number of the lender

(a) Financial Institutions(if available)

(b) Employer(if available)

(c) Others
4. Deduction under Chapter VI-A(A) Section 80C,80CCC and 80CCD

(i) Section 80C

(a) ……………..

(b) ……………..

(c) ……………..

(d) ……………..

(e) ……………..

(f) ……………..

(g) ……………..

(ii) Section 80CCC

(iii) Section 80CCD

(B) Other sections (e.g. 80E, 80G, 80TTA, etc.) under Chapter VI-A.

(i) section……………….

(ii) section……………….

(iii) section………………

(iv) section……………….

(v) section……………….

Verification
I,…………………..,son/daughter of……………………….. do hereby certify that the information given above is complete and correct.
Place………………………………………….
Date…………………………………………… (Signature of the employee)
Designation ……………………………….…. Full Name:………………”;
Categories
80C Deductions Tax Return (ITR)

Tax Computation sheet & Budget Highlights 2016-17

Tax Computation & CTC Structure 2016-17

Download latest tax computation (Salary tax computation) and CTC maker

 

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Budget Highlights 2016

 

Key Changes of Budget 2016

 

  • No change in basic exemption limits and tax rate for individuals and HUF.

 

  • No change in 80C deduction limit.

 

  • Tax rebate (section 87A) has been increased from Rs. 2,000 to Rs. 5,000, So now limit for individual and HUF whose total income is below 5, 00,000 Lakh has increased upto Rs. 3,00,000 from 2,70,000. This will lead to tax savings of INR 3,090 per annum.

 

  • Surcharge rate has been increased from 12% to 15% for individual, HUF, AOP, BOI, Artificial judicial person having total income more than of Rs. 1 Crore.

 

  • Deduction for additional interest of Rs. 50,000 per annum for loans up to Rs. 35 Lakh sanctioned in 2016-17 for first time home buyers, where the house cost does not exceed Rs. 50 Lakh. In overall context, first home buyer can get maximum deduction of interest on housing loan up to Rs. 250,000 in aggregate comprising of Rs. 2 Lakh under Section 24(b) of the IT Act and Rs. 50, 000 under section 80EE of the IT Act.

 

  • The limit for deduction for rent paid under Section 80GG has been increased from Rs. 2000 per month to Rs. 5000 per month, to provide relief to those who live in rented houses and do not get HRA from the employers.

 

  • The exemption in respect of employer contribution to superannuation fund has been increased to INR 150,000 from INR 100,000. This will result in tax savings in the range of INR 5,150 to INR 17,768.

 

  • The tax exemption in respect of employer contribution to Provident Fund [PF] will be capped to INR 150,000 per annum or 12% of salary, whichever is lesser. This could result in a higher tax outgo for employees.

 

  • Tax deduction at source that is triggered on PF withdrawal to apply where amount withdrawn exceeds INR 50,000 (earlier limit was INR 30,000).
  • The budget contains The Income declaration scheme which will provide a window to the taxpayers who have not paid full taxes in the past to ensure compliance by paying 45% of declared income as tax and penalty. This will result in no further interest or penalty or prosecution. The scheme will be open from June 2016 to September 2016 and will be subject to specified conditions.

 

  • Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of National Pension Scheme (NPS). Annuity fund which goes to legal heir will not be taxable.

 

  • With the proposed change, PF may become taxable to the extent of 60% of corpus on any withdrawal (to the extent it relates to contributions made after 1 April 2016) – some employees may not be impacted by this change depending on the monthly salary prescribed (further notifications awaited). The taxability may arise even when employee withdraws upon retirement at the prescribed age.

 

  • Sec 24(b) provides that interest payable on capital borrowed for acquisition or construction of house property shall be deducted of Rs. 2, 00,000 if such acquisition or construction is completed within three years from the end of the financial year in which capital was borrowed. After budget three years is substituted to five years.

 

  • The Budget contains The Income Declaration Scheme which will provide a window to the taxpayers who have not paid full taxes in the past to ensure compliance by paying 45% of declared income as tax and penalty. This will result in no further interest or penalty or prosecution. The scheme will be open from June 2016 to September 2016 and will be subject to specified conditions.

 

  • Additional tax at the rate of 10% of gross amount of dividend will be payable by the recipients receiving dividend in excess of 10 Lakh per annum.

 

  • A new levy called ‘Krishi Kalyan Cess’ will be imposed from 01/06/2016 on all the taxable services @ 0.5% of the value of taxable services. So now effective rate of service tax is 15%.
  • The installments for advance tax payments is proposed to be revised to four installments (15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March) from three installments.

 

 

 

Income tax slabs & rates for financial year 2016-2017

 

 

Rates for Individuals below 60 years
Income slabs Income tax rate
Income up to Rs. 2.50 lakhs Nil
Rs. 2.50* to Rs. 5 lakhs 10%
Rs. 5 Lakhs to Rs. 10 Lakhs 20%
Rs. 10 lakhs above 30%
Rates for Individuals below 60 years below 80 Years
Income slabs Income tax rate
Income up to Rs. 3 lakhs Nil
Rs. 3* to Rs. 5 lakhs 10%
Rs. 5 Lakhs to Rs. 10 Lakhs 20%
Rs. 10 lakhs above 30%
Rates for Individuals 80 years & above
Income slabs Income tax rate
Income up to Rs. 5 lakhs Nil
Rs. 5 Lakhs to Rs. 10 Lakhs 20%
Rs. 10 lakhs above 30%
*Provide a tax credit of Rs. 5,000/- to every person who has a total income upto Rs. 5 Lakh. Surcharge of 12% on Income tax those taxable incomes exceeds Rs.1.00 crore will apply.
Ø Education cess will apply @3% on the Income tax & Surcharge will apply for all.
Ø Surcharge will be apply @ 15% on the income tax if taxable income exceeds Rs. 1 crore

 

The above points only consider main changes in income tax and service tax.